Urban Company vaults to $2.1 bn valuation in Prosus, Dragoneer led funding round

Home services company Urban Company has closed its ongoing growth round of funding, dubbed Series F, at $255 million (Rs 1866.7 crore). Led by new investors Prosus Ventures, Dragoneer Investment Group and Wellington Management, the round values the Gurugram based company at $2.1 billion, it said in a statement.

The Series F round comprised of primary and secondary capital infusion. In April, Prosus Ventures led a primary capital infusion of $188 million, regulatory filings at the time showed. Dubai-based Vy Capital and alternative investments firms Steadview Capital and Tiger Global Management, DF International Partners, and Boston-based Wellington Management participated in the round, the filings showed.

The secondary transaction created exits for select angels and early investors, the company said in the statement.

The company was valued at close $1 billion in August 2019 when it raised $75 million in a round led by Tiger Global.

With this round, Urban Company has raised over $425 million in equity and debt capital across multiple rounds, according to data sourced from VCCEdge.

The company will invest in innovation, training, product development, enhanced quality control and safety measures for partners and consumers from the current infusion. It will also increase its presence to the 100 top cities in India and expand to international markets. At present, it is operational in 35 cities across India, UAE, Singapore, Australia and the Kingdom of Saudi Arabia. 

“Urban Company is disrupting a large, fragmented industry that has seen low digital adoption until now. Through their technology-enabled platform and keen focus on providing high-quality, trained service partners, Urban Company has been able to achieve the very difficult task of productizing services,” said Ashutosh Sharma, head of investment for India at Prosus Ventures. 

Founded in 2014 by Abhiraj Singh Bhal, Varun Khaitan and Raghav Chandra, Urban Company provides on-demand services including beauty and spa at home, cleaning, plumbing, carpentry, appliance repair, painting and others. 

“It is the trust our consumers and 35,000 service partners have in us that makes Urban Company Asia’s largest home services marketplace. With this funding, we plan to rapidly scale our business while continuing to invest further in the safety of our consumers and service partners, training of partners and product development,” CEO Bhal said.

For the financial year 2020-21, Urban Company reported total revenues of Rs 263.1 crore, with total reported losses at Rs 155.8 crore for the period.